Credit Union Share Insurance Fund Parity Act
Public Law 113–252
Credit Union Share Insurance Fund Parity Act
252
113–252
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
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2021-10-15
Credit Union Share Insurance Fund Parity Act
11425
113
2014-12-18
Credit Union Share Insurance Fund Parity Act
[(Public Law 113–252)]
[This law has not been amended]
[Currency: This publication is a compilation of the text of Public Law 113-252. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
AN ACTTo amend the Federal Credit Union Act to extend insurance coverage to amounts held in a member account on behalf of another person, and for other purposes.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Credit Union Share Insurance Fund Parity Act”.
SEC. 2. INSURANCE OF AMOUNTS HELD ON BEHALF OF OTHERS.
Section 207(k) of the Federal Credit Union Act (12 U.S.C. 1787(k)) is amended—
(1) in paragraph (1)(A)—
(A) by inserting after “payable to any member” the following: “, or to any person with funds lawfully held in a member account,”; and
(B) by striking “and paragraphs (5) and (6)”;
(2) in paragraph (2)(A), by striking “(as determined under paragraph (5))”;
(3) by redesignating paragraph (5) as paragraph (6); and
(4) by inserting after paragraph (4) the following:
“(5) Coverage for interest on lawyers trust accounts (iolta) and other similar escrow accounts.—
“(A) Pass-through insurance.—The Administration shall provide pass-through share insurance for the deposits or shares of any interest on lawyers trust account (IOLTA) or other similar escrow accounts.
“(B) Treatment of ioltas.—
“(i) Treatment as escrow accounts.—For share insurance purposes, IOLTAs are treated as escrow accounts.
“(ii) Treatment as member accounts.—IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph (1), if the attorney administering the IOLTA or the escrow agent administering the escrow account is a member of the insured credit union in which the funds are held.
“(C) Definitions.—For purposes of this paragraph:
“(i) Interest on lawyers trust account.—The terms ‘interest on lawyers trust account’ and ‘IOLTA’ mean a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations who provide services to clients in need.
“(ii) Pass-through share insurance.—The term ‘pass-through share insurance’ means, with respect to IOLTAs and other similar escrow accounts, insurance coverage based on the interest of each person on whose behalf funds are held in such accounts by the attorney administering the IOLTA or the escrow agent administering a similar escrow account, in accordance with regulations issued by the Administration.
“(D) Rule of construction.—No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an IOLTA or similar escrow account in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law.”
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